Gross sales vs. processing fees
Why the deposit from Stripe or Square is smaller than your real revenue — and why we record both sides.
Gross sales vs. processing fees
When a customer pays you through a processor like Stripe, Square, or a POS, the amount deposited in your bank is net — your gross sales minus the processor's fees (and any refunds). If we only counted the deposit, your revenue would look too low and you'd miss a real, deductible expense.
So we record the full gross sales as revenue and the processing fees as an expense. That's why we ask for the processor's own report, not just the bank deposit.
We're expanding this guide
A fuller explainer is on the way.
What this article will cover
- A worked example of gross vs. net
- Why processing fees are a deduction worth capturing
- What report we need from your processor
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